Subtitle B 2001-2801

Question 1

Imposition of Tax (Gift)

Answer 1

2501

Question 2

Rate of Tax (Gift)

Answer 2

2502

Question 3

Taxable Gifts

Answer 3

2503

Question 4

Is gift tax considered tax inclusive or exclusive?

Answer 4

Exclusive: Funds used to pay the tax are not included in calculating the tax base.

Question 5

Is estate tax considered tax inclusive or exclusive?

Answer 5

Inclusive: Funds ultimately used to pay the tax are included in the tax base and must come from after-tax dollars.

Question 6

Taxable Gifts for Preceding Calendar Years

Answer 6

2504
Basically says what kind of gifts to include in prior year gifts when making current year calculations for tax.

Question 7

Unified Credit Against Gift Tax

Answer 7

2505

Question 8

Subchapter B - Transfers (Gifts)

Answer 8

2511-2516; 2518-2519

Question 9

Transfers in General (Gifts)

Answer 9

2511
Says gifts apply to applicable transfer whether in trust or not or direct or not, and whether property tangible or intangible. Also says rules for nonresident noncitizen donor.

Question 10

Valuation of Gifts

Answer 10

2512
[Valued as of date gift made; donative intent not required]

Question 11

Gift by Husband or Wife to a Third Party

Answer 11

2513
[Gift Splitting]

Question 12

Powers of Appointment (Gifts)

Answer 12

2514

Question 13

Treatment of Generation-Skipping Transfer Tax (Gifts)

Answer 13

2515

Question 14

Certain Property Settlements (Gifts)

Answer 14

2516
[Relating to Divorce]

Question 15

Disclaimers (Gifts)

Answer 15

2518

Question 16

Dispositions of Certain Life Estates (Gifts)

Answer 16

2519

Question 17

Subchapter C - Deductions (Gifts)

Answer 17

2522-2524

Question 18

Charitable and Similar Gifts (Deduction)

Answer 18

2522

Question 19

Gift to Spouse (Deduction)

Answer 19

2523

Question 20

Extent of Deductions (Gifts)

Answer 20

2524

Question 21

Chapter 13 - Tax on Generation-Skipping Transfers

Answer 21

2601-2664

Question 22

Subchapter A - Tax Imposed (GST)

Answer 22

2601-2603

Question 23

Subchapter B - Generation - Skipping Transfers

Answer 23

2611-2614

Question 24

Tax Imposed (GST)

Answer 24

2601

Question 25

Amount of Tax (GST)

Answer 25

2602

Question 26

Liability for Tax (GST)

Answer 26

2603

Question 27

Generation-Skipping Tax Defined

Answer 27

2611

Question 28

Taxable Termination; Taxable Distribution; Direct Skip

Answer 28

2612

Question 29

Skip Person and Non-Skip Person Defined

Answer 29

2613

Question 30

Shenaniganry that warranted tax of taxable terminations (GST)

Answer 30

Wealthy Grantors creating trust that gave income to child for life, then grandchild for life, then great-grandchild for life, etc.

Question 31

When can a trust be a skip person?

Answer 31

When all interests in the trust are held by skip persons or if only skip persons can receive distributions.

Question 32

Subchapter F - Other Definitions and Special Rules (GST)

Answer 32

2651-2654

Question 33

Generation Assignment

Answer 33

2651

Question 34

Other Definitions

Answer 34

2652

Question 35

Taxation of Multiple Skips

Answer 35

2653

Question 36

Special Rules

Answer 36

2654

Question 37

Subchapter C - Taxable Amount (GST)

Answer 37

2621-2624

Question 38

Taxable Amount in Case of Taxable Distribution

Answer 38

2621

Question 39

Taxable Amount in Case of Taxable Termination

Answer 39

2622

Question 40

Taxable Amount in Case of Direct Skip

Answer 40

2623

Question 41

Valuation (GST)

Answer 41

2624

Question 42

Subchapter D - GST Exemption

Answer 42

2631-2632

Question 43

GST Exemption

Answer 43

2631

Question 44

Special Rules for Allocation of GST Exemption

Answer 44

2632

Question 45

Subchapter E - Applicable Rate; Inclusion Ratio

Question 46

Inclusivity/Exclusivity of the GST taxes?

Answer 46

Inclusive: Taxable Terminations and Taxable Distributions Exclusive: Direct Skips

Question 47

Who pays the 3 GST taxes?

Answer 47

Direct Skip: Transferor Taxable Termination: Trustee Taxable Distribution: Transferee

Question 48

Is the definition of gift under the tax code broader or narrower than under the common law?

Answer 48

Broader. Generally, no dAonative intent is required under the tax code.

Question 49

What is a major exception to a deemed gift when consideration is inadequate?

Answer 49

An arms-length transaction in the ordinary course of business will not be a gift even if one side gets a bargain. Donative intent can come into play to determine whether it was a genuine arms-length transaction.